World News: 08:05 GMT Friday 11th January 2019. [FinCanna Capital Corp. via Globe Newswire via SPi World News]
VANCOUVER, British Columbia, Jan. 11, 2019 (GLOBE NEWSWIRE) -- FinCanna Capital Corp. (“FinCanna”) (CSE: CALI) a royalty company for the U.S. licensed medical cannabis industry, is pleased to announce that further to its news releases dated January 4 and 7, 2019, it is upsizing and closing its oversubscribed Secured Convertible Debentures (“Debentures”) financing in the amount of $2.4 million. Furthermore, the company has received firm commitments for an additional $1.25 million to close in a second tranche on or before February 8, 2019.
The Debentures will be secured by a general security interest, will mature two years from closing and will bear interest at 12% per annum, payable in cash or, at the option of the Subscriber, in common shares of FinCanna ("Common Shares") subject to certain conditions. The Debenture is convertible into Common Shares at $.20 per share. Subscribers for Debentures will receive one common share purchase warrant (“Warrant”) for each $0.20 of principal amount of Debenture. Each Warrant will entitle the holder to acquire one Common Share of FinCanna for $0.30 at any time up to two years from the closing date.
The FinCanna management team has subscribed for $500,000 of the Debentures. The conversion price of $0.20 represents a premium of 67% to the share price when first announced on January 4, 2019.
FinCanna intends to use the net proceeds from the Debentures to fund additional royalty investment opportunities and the company’s ongoing working capital requirements.
“We are very pleased with the strong support we’ve received from existing and new shareholders for this financing,” said Andriyko Herchak, President and CEO of FinCanna Capital. “The funds from the first tranche of the financing will enable us to accelerate the expansion of our royalty portfolio with high growth companies that we’ve been in advanced discussions with for several months. The funds from the second tranche, together with ~US$3.9 million to be received from the sale of CTI’s Coachella Property, fully funds our investing commitments and gives us a strong treasury to strengthen our portfolio of investments. As the U.S licensed cannabis market continues to grow, we strongly believe our diversified portfolio in emerging private businesses will create significant shareholder value as they mature.”
FinCanna will pay a cash finder’s fee of 8% on a portion of the proceeds raised. The lead finder in the non-brokered financing is TriView Capital Ltd.
FinCanna is a royalty company that provides growth capital to rapidly emerging private companies operating in the licensed U.S cannabis industry. The Company earns its revenue from royalties paid by its investee companies that are calculated based on a percentage their total revenues.
FinCanna’s scalable royalty model provides an attractive alternative or complement to debt or equity financing for its investee companies. FinCanna is focused on delivering high-impact returns to its shareholders by way of a strategically diversified investment portfolio.
For additional information visit and FinCanna’s profile at .
Globe Newswire: 08:05 GMT Friday 11th January 2019
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